Affordable Housing in the News

Providence Business News Article: Housing Bond Generates
Broad Economic Activity

In an article by Chris Barrett in this week's Providence Business News, Albert Valliere, Jr., president of Nation Wide Construction, spoke of the impact public investment in affordable housing has had on his company.

"It was a godsend, because here I am toward the end of this project and I can't say I feel the economy turning around tremendously.  But I see hope."

The project he is referring to is Sweetbriar, located in Barrington.  According to the article, without this development, along with two like it in Burrillville and Providence, Valliere likely would have laid off 60 percent of his staff, taken a hit on his balance sheet, and left subcontractors without much needed work.

The development of Sweetbriar, and other similar sites, was made possible in part to state funding provided through the Building Homes Rhode Island program.  Those monies were made available after the overwhelming voter support of a bond referendum in 2006 setting aside $50 million over four years for the creation of affordable homes throughout Rhode Island.

HousingWorks RI (HWRI) recently commissioned an economic impact study of Rhode Island's housing bond dollars and their deployment through the Building Homes Rhode Island program. The study found that the $25 million spent by the state on affordable housing in 2007 and 2008 generated $393.9 million in economic activity, or about $15.80 for every $1 invested.

The study also found that bond-funded developments accounted for 31 percent of all building permit activity in the state during 2007 and 2008.

You can read more of Chris Barrett's article in the Providence Business News online.

Providence Business News Editorial: Housing Bond Builds More Than New Homes

An editorial in this week's Providence Business News begins "not all public spending is created equal." It goes on to review the findings of a Special Report recently released by HousingWorks RI that quantified the positive economic impact of Rhode Island's investment in affordable housing.

Speaking of the state's investment in affordable housing, the editorial states "this is not just a very effective use of public dollars at a time when the state's construction industry has been hurting.  It is also good public policy."

Providence Journal Article: Living on the Streets has Higher Cost to Society

In today's Providence Journal, Paul Davis wrote about the Housing First program, which gives a home to the chronically homeless while offering support services like therapy and drug counseling.  Unlike traditional shelters, the Housing First model does not require residents to be sober.  Supporters say the lack of restrictions actually makes the treatment process more transparent because residents are not concerned with losing housing if they have a relapse.

Advocates for the program also cite studies that indicate the Housing First model is more cost effective for the chronically homeless than the traditional shelter system.  According to the artice, Eric Hirsch, a sociology professor at Providence College and Irene Glasser, an anthropology professor at Roger Williams University studied the program in 2007 and found it reduced the number of overnight visits to hospitals, emergency rooms, and prisons.  The study revealed that those living on the streets incurred nearly $32,000 a year in government costs for overnight visits to shelters, jails and emergency care centers. Housing First clients incurred costs of less than $23,000.

Housing First was introduced to Rhode Island in 2004, and has helped about 150 single men and women find apartments in the State's urban areas since 2005.

National Housing Trust Fund Receives Legislative Support

On May 28, the United States House of Representatives passed H.R. 4213, a bill including $1.065 billion for the National Housing Trust Fund.

A summary of this legislation from the Ways and Means Committee reads:

"The bill would provide a one-time capitalization of the National Housing Trust Fund (NHTF), which will provide communities with funds to build, preserve, and rehabilitate rental homes that are affordable for very low income households. These homes will help address the serious shortage of affordable housing for lowest income families, including people who are unemployed or employed in the low wage work force, veterans, and elderly and disabled people on fixed incomes. It is estimated that an infusion of $1 billion in capital funds into the NHTF and $65 million for project-based vouchers to couple with NHTF capital grants will support the immediate production of 10,000 rental homes, creating 15,000 new construction jobs and 4,000 new jobs in ongoing operations. This provision is estimated to cost $1.065 billion over 10 years."

According to preliminary estimates provided by the National Low Income Housing Coalition, $4.2 million for every billion dollars invested would be allocated to Rhode Island from the National Housing Trust Fund.

The next hurdle is to secure funding through the Senate. If the bill passes the Senate without changes, it will go to the President for his signature. 

Link to a toolkit containing helpful information including a summary of the legislation, frequently asked questions, fact sheets, and data on the need for affordable housing."
http://www.nlihc.org/template/page.cfm?id=132

Save the Date

On Friday, June 25 from 9:30am to 12:30pm, HousingWorks RI is joining with Rhode Island Housing, the Rhode Island Housing Resources Commission, the Corporation for Supportive Housing, the Housing Network of Rhode Island and Grow Smart Rhode Island to sponsor a workshop entitled: "Building Support for Affordable Homes in Your Community."

This will be the first of a series of four workshops designed to provide essential information and practical skills to members of Affordable Housing Committees throughout Rhode Island to support their efforts in promoting the development of affordable homes in their communities.

This event will be held at Atria Bay Spring Village in Barrington. To learn more about the workshop, please contact Wendi DeClercq at HousingWorks RI.

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